COST LEADERSHIP

  • Review the Aldi case study. Assess your satisfaction with Aldi and make recommendations about how the company could modify its business-level strategy to both increase your overall level of satisfaction and to attract new customers. Provide specific examples to support your response.
  • Analyze the five business-level strategies . Determine how a shopper’s experience might change if it switched to one of the strategies (your choice). Explain your rationale.

5 STRATAGIES

1.COST LEADERSHIP-is an integrated set of actions taken to produce products with features that are acceptable to customers at the lowest cost, relative to that of competitors.

2.DIFFERENTITATION-is an integrated set of actions taken to produce products ( at an acceptable cost) that customers perceive as being different in ways that are important to them.

3.FOCUSED DIFFERENTIATION- is an integrated set of actions taken to produce products that serve the needs of a particular segment of customers.

4.FOCUSED COST LEADERSHIP

5.INTEGRATED LOW COST DIFFERENTIATION -finds a firm engaging simultaneously in primary value chain activities and support functions to achieve a low cost position with some product differentiation.

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